CapitaLand Investment Limited (CLI), a leading global real asset manager, has secured new capital commitments from both new and existing institutional investors for its value-add lodging private fund, CapitaLand Ascott Residence Asia Fund II (CLARA II). This demonstrates sustained investor confidence in the fund’s strategy of repositioning underutilised assets into high-performing living spaces in key Asia Pacific gateway cities.

As part of this strategy, CLARA II and its co-investors have acquired a prime mixed-use asset in Shinjuku, Tokyo for over JPY30 billion, marking the fund’s third acquisition and its second in Japan. With these new commitments, CLI’s funds under management will grow by approximately S$470 million. CLI holds a 20% stake in CLARA II, reinforcing its asset-light strategy and strong alignment with its capital partners.

Strategic Vision and Expertise

Mr. Kevin Goh, CEO of CLI Lodging, commented:

“With over 40 years of lodging experience and a strong presence across Asia, we’ve developed significant operational expertise and market insight. Investors value CLI’s leadership in the living sector, where we pioneered the serviced residence model in Asia Pacific.”

Mr. Goh added that CLARA II focuses on refurbishment and asset conversion to unlock value. Amid global uncertainty, opportunities for value-add strategies in the hospitality sector have increased. CLI leverages The Ascott Limited’s strong brand reputation and marketing network to enhance asset performance. The fund’s flex-hybrid model accommodates both long- and short-stay guests, balancing income stability with revenue optimisation.

Tokyo Asset Repositioning: Citadines Shinjuku Tower Tokyo

The newly acquired 22-storey property in Shinjuku currently includes hotel, residential, office, and retail components. The hotel and residential sections will be transformed into a 179-unit serviced residence under the Citadines brand, launching in phases from 2H 2026. Facilities will include a gym, function rooms, restaurant, café, and laundromat.

With studio to three-bedroom apartments, the property will serve both corporate and leisure travellers. Its strategic location offers proximity to major transport hubs, including Shinjuku Station and both Narita and Haneda airports. The development also aligns with the Shinjuku Masterplan 2040, enhancing the district’s commercial appeal.

Lodging Fund Momentum and Expansion to Europe

Mr. Mak Hoe Kit, Managing Director, Lodging Private Equity Funds at CLI, said:

“Japan’s real estate market offers deep capital pools and high liquidity. We secured this off-market opportunity at an attractive entry price.”

CLARA II’s previous projects—lyf Shibuya Tokyo and lyf Bugis Singapore—have been successfully repositioned, with lyf Shibuya Tokyo achieving over 70% occupancy within three months. CLI’s earlier fund, Ascott Serviced Residence Global Fund (ASRGF), delivered strong results, including profitable divestments of lyf Ginza Tokyo and Somerset Shinagawa Tokyo.

Building on this track record, CLI is exploring European expansion to address rising demand for modern and sustainable hospitality assets in gateway cities such as London, Paris, Berlin, Amsterdam, and Barcelona.

Japan’s Tourism and Hospitality Growth

In 2024, Tokyo’s revenue per available room (RevPAR) rose 43% above pre-COVID levels (2019), with a further 19% year-on-year increase in February 2025. Foreign visitor numbers to Japan reached a record 3.91 million in April 2025, part of a 24.5% increase year-to-date, with a government target of 60 million tourists annually by 2030.

CLI’s Japan Portfolio

CLI currently manages a diversified portfolio of over 70 properties in Japan across lodging, office, logistics, and self-storage sectors in nine cities, including Tokyo, Osaka, Kyoto, and Fukuoka.

www.capitaland.com